A £315million commercial quarter could be built in the heart of Preston, the Citizen can reveal.

City chiefs said much of the city's office space is out-of-date, and a dedicated business district with new office blocks is vital if the business and information technology demands of the 21st century are to be met.

Although the location is yet to be decided, Nicola Turner, city vision manager, said areas within or on the perimeter of Ringway were being looked at.

She said: "A lot of the city centre office space was built in the 1960s or earlier, and it tends not to be of the quality or condition that is appropriate for current office use."

The demand for a business district was identified by GVA Grimley, a consultancy firm, that produced a report on regeneration for the city council earlier this year.

A developers forum is to be held in the next year to gauge the potential interest.

Mark Clarkson, of Eckersley, a commercial property consultancy based in Starkie Street, agreed with the need for commercial quarter but reckoned its success would depend on its location.

"Where is there in Preston that you could clear away a site? There are developers actively looking for sites at the moment," he said.

He said Winckley Square used to be a business district but had becoming more a residential area in recent years.

And he added: "Car parking in the city centre is the main problem which needs to be addressed."

The plans have the backing of the city council.

Councillor Veronica Afrin, cabinet member for regeneration, said: "Business brings a lot of people into the city each day and it's important that we do upgrade."

She rejected claims that the city's economy could not support such a district.

"We already do well selling Preston as an attractive location. As long as we get the residential, leisure, and business balance right, as well as the traffic right, we will achieve what we want," she added.

The plan forms part of Preston's strategy to become the third city of the North West by 2012.

The strategy also includes the £450m Tithebarn regeneration project to build new shops, a department store, homes, and restaurants in the city centre by 2011. An agreement, to build the project, was signed by city council and developers, Grosvenor, last month.

Another part of the third city vision is to develop the use of the River Ribble under the £800m Riverworks project that would see the creation of hundreds of new homes along the river's edge.

If investors can been found, building work could start within a couple of years.